Veeva lifts guidance as R&D growth offsets commercial slowdown
The life-sciences software provider raised its full-year revenue outlook to as much as $3.645 billion.
Veeva Systems (VEEV) reported first-quarter revenue growth that held steady even as its commercial business decelerated, prompting the life-sciences software provider to raise its full-year guidance.
The results marked a quarter in which Veeva’s research-and-development segment accelerated sharply, offsetting a slowdown in its commercial-solutions business. Total revenue rose 16% from a year earlier to $882.9 million, matching the prior quarter’s growth rate but below the 17% pace seen in the fiscal second quarter of 2026.
Subscription revenue grew 15% to $730.2 million, a slight deceleration from 16% in the prior quarter and 17% in the two quarters before that. The divergence between the company’s two core segments explained the mixed performance. Veeva Commercial Solutions subscription revenue grew 10.6% to $337.9 million, down from 11.5% in the prior quarter and 16.2% in the fiscal third quarter of 2026. Meanwhile, Veeva R&D and Quality Solutions subscription revenue accelerated to 19.1% growth, reaching $392.3 million and outpacing the 17.3% growth in the prior quarter. Professional services and other revenue jumped 23% to $152.8 million, accelerating from 14.2% in the prior quarter.
Profitability metrics softened. GAAP operating income grew 17% to $273.1 million, decelerating from 30% in the prior quarter, while non-GAAP operating income rose 13% to $395.4 million, down from 19% growth in the prior quarter. GAAP operating margin expanded to 30.9%, up from 29.4% in the prior quarter, though non-GAAP operating margin narrowed to 44.8% from 46.1% a year earlier.
The company raised its fiscal 2027 revenue guidance to a range of $3.635 billion to $3.645 billion, up from $3.585 billion to $3.600 billion previously, representing 13.8% to 14.1% growth. Non-GAAP operating income guidance was lifted to $1.61 billion from $1.59 billion, and non-GAAP fully diluted net income per share guidance rose to $9.05 from $8.85.
Veeva also disclosed progress in its Vault CRM business, adding 27 new customers in the quarter to bring the total to over 150 live customers, up from 125 in the prior quarter. The company’s March acquisition of Ostro, which delivers compliant conversational AI for more than 50 brands, and the planned November release of Veeva Falcon, an AI platform for clinical and regulatory workflows, were highlighted as key initiatives.
The balance sheet reflected a $226.9 million share repurchase during the quarter, a first for the period, while cash and short-term investments rose to a combined $7.3 billion.